Can I make a claim for miss-sold PPI on credit card I defaulted on and then settled?

AdKM

Hi all,

I defaulted on 3 credit cards and 1 loan in the distant past. I had a £10k loan and £3k credit card with Egg and two credit cards with HSBC (£6k) and Barclays (£3k).
All of those debts were sold to Moorcroft Debt Recovery and I settled with them when I came into some money. Moorcroft offered 40% off the outstanding debts to settle.
To be quite honest I am so glad that this chapter is over and a line has been drawn under it, I have wanted to go nowhere near it again. I guess there is some fear that I will bring back into life something either dormant or 'finished with'.
Here's the thing though, I know I was mis sold on at least two of those debts. I remember the person telling me on application that my application 'would be looked on more favourably' if I took out PPI. What would you do? I no longer hold the old paperwork and am reluctant to call up and stir this whole thing up again.
I certainly don't want to use a company who'll take a fee to do it either.
Could I make a successful claim? And if so would the payment be put toward the debt that was written off?

[Deleted User]

You can complain about the PPI if you want, but any redress would be offset against the monies you failed to pay when you "settled" the debt.
Banks use "in house" collection agencies, so the debt is not truly sold on.

Of course, that pre-supposes that the Bank agree you were mis-sold. Your complaint reason is hardly compelling.

All-in-all, probably a waste of your time unless you only want the satisfaction of having a mis-sale confirmed.

AdKM

Thank you for replying.
If I were successful though would I not be right in thinking that the debt was actually settled and thus any compensation due could not in fact be used to redress anything outstanding. Isn't a 'settled debt' exactly what it says?

[Deleted User]

AdKM wrote: »

Thank you for replying.
If I were successful though would I not be right in thinking that the debt was actually settled and thus any compensation due could not in fact be used to redress anything outstanding. Isn't a 'settled debt' exactly what it says?

I refer you to my earlier response.

AdKM

Moorcroft Debt Recovery would seem to be an independent debt recovery company and not 'in house' collectors of any bank or other lender. From a legal perspective the settlement I came to with Moorcroft bears no relation to whether I was mis sold or not by the original lender.

I do appreciate that any claim I might make could be seen as 'taking the michael' though.

I wonder if there are any precedents for a potential claim of this kind. I guess it comes down to case law in the end.

IAmWales

The debt is only settled in so far as they agree to stop chasing you for it. It still exists, it's just been made dormant.

I would question why you feel you are entitled to money you have not paid?

AdKM

I do not think the debts do still exist. Moorcroft and I settled 9 years ago. Nothing is dormant. The only thing I feel I could legally be entitled to is compensation for being mis-sold. To my mind that is a completely separate issue to whether the debt was paid or not. I am interested in what the law would be. Not so much peoples subjective opinions on ethics.

barclaysbabe

AdKM I too had this problem. I had a credit card with MBNA, but my debt was transferred to Moorgate. MBNA wrote to me saying that they may owe me for mis - selling a product. I too did not want to rock the boat as I still had the outstanding debt which I was paying off. Sure enough they paid out, but as the debt was transferred to Moorgate they could not offset it against any outstanding debt. So they sent me a cheque and I paid them off. Same thing happened with BOS except I still owed them money and was paying it off. Once I knew they owed me money I called and asked they to pay it off against my debt with them. Again they said they couldn't and sent me a cheque.


You have paid off your debt, so have nothing to lose.

AdKM

"The OP has in fact paid 40% of his debt".

I would argue that this statement is incorrect. I have settled 100% of my debt by reaching agreement to pay a 60% lump sum. 40% was thus written off. There is no debt left to pay. There is no debt that is lying there 'dormant'.

What remains though is a person who was mis-sold a loan and credit card.

barclaysbabe

"The OP has in fact paid 40% of his debt".


BOS is my last debt to be paid off and I received my PPI money almost 2 years ago.


OP you can still go ahead with the claim. They sold you something in which they should not have, you have paid 60%. They will calculate what you are entitled to. At the end of the day you still paid towards it

[Deleted User]

I dunno why you haven't just made your "complaint".

What point arguing whether you've paid your debt?

It's the Bank, not the internet, you need to convince.

barclaysbabe wrote: »

you have paid 60%.

He says he paid 40%.

I'll leave you guys to it...